Trade Restrictions: Licensing, Tariffs, Import Quotas

Government-imposed policies that limit or regulate the flow of goods

Foreign Trade

Trade restrictions are government-imposed policies that limit or regulate the flow of goods and services across national borders. These measures are typically employed to protect domestic industries, safeguard national security, uphold regulatory standards, or advance political and strategic interests.

Types of Trade Restrictions

Tariffs

1. Taxes imposed on imported goods, raising their prices to reduce import demand (covered in detail previously).
2. Religion and export prices

Import Quotas

1. Quantitative limits on the amount of a specific product that may be imported during a set time period.
2. Example: The United States maintains quotas on sugar and certain textiles to protect domestic producers.

Export Restrictions / Bans

1. Measures that limit or prohibit the export of specific goods, often to ensure domestic supply or for strategic reasons
2. Example: During the COVID-19 pandemic, several countries restricted the export of medical supplies and equipment

Licensing Requirements

1. Mandatory permits for importing or Exporting certain goods, typically applied to sensitive or regulated items such as arms, pharmaceuticals, or hazardous chemicals.

Voluntary Export Restraints (VERs)

1. Agreements in which an exporting country voluntarily limits the quantity of goods exported to a particular country, often under diplomatic pressure.
2. Example: In the 1980s, Japan agreed to limit automobile exports to the U.S. to ease trade tensions.

Sanctions and Embargoes

1. Trade restrictions imposed for political or security purposes, often Targeting specific countries, sectors, or individuals.
2. Examples: The long-standing U.S. embargo on Cuba and international sanctions on Russia and Iran.

Technical Barriers to Trade (TBTs)

1. Regulations related to health, safety, environmental protection, or product labeling that can unintentionally or deliberately restrict trade.
2. Example: The European Union’s restrictions on genetically modified organisms (GMOs).
3. Agreement on Technical Barriers to Trade

Customs Procedures and Administrative Delays

1. Complex documentation, bureaucratic red tape, or inefficient Customs processes that hinder the smooth flow of imports and exports.
2. World Customs Organization (WCO)
3. Customs Procedures
4. Global Marketing & Trade Agreements

AI for Global Business

1. AI and Global Trade
2. Digital Trade and Cross-Border E-Commerce
3. AI in Global Supply Chain Management

Academic Programs

(c) EENI Global Business School (1995-2025)
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